Ailing cryptocurrency exchange, CoinFLEX has filed a motion for restructuring with the authorities in the Seychelles Islands. In June, CoinFLEX halted all withdrawals on their platform because of liquidity problems. The reason the restructuring motion was filed in Seychelles is because the company’s headquarters are situated on the island.

CoinFLEX’s troubles started when longtime crypto investor, Roger Ver failed to meet a margin call of $47 Million. This was not CoinFLEX’s only reported issue with Roger and CoinFLEX has dragged him to court in a bid to recover a total loss of $84 Million.

Roger’s failure to meet the margin call resulted in liquidity problems that were followed up with internal measures aimed at cutting operational costs by up to 60%. However, the bottom lines still came up short and the company has now been forced to undergo a restructuring process in an attempt to stay afloat and eventually pay back investors since they halted withdrawals in June. Right now, only 10% of customer funds are available for withdrawal.

As part of the restructuring process, CoinFLEX has filed a request with the Seychelles government to issue RecoveryUSD (rvUSD), equity, and the platform’s proprietary FLEX coin to anxious customers who have not been able to access their funds since withdrawals were halted in June. This solution might be met with hostility by the platform’s users who would obviously prefer being allowed to withdraw the funds they deposited in the currency of their choice.

According to CoinFLEX CEO, Mr. Mark Lamb, the ailing crypto exchange is eagerly holding on for a new set of shareholders that will help the company recover and pay back customers deposits. However, in spite of Mr. Mark’s optimism on the situation, it’s evident that many CoinFLEX customers don’t share his positive outlook. It remains to be seen whether Seychelles authorities will approve the filing or push the platform to seek a different solution before restructuring is approved.

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